Hold Now, Raise Later for Key South Africa Interest Rate: Chart

(Bloomberg) -- South Africa’s central bank will probably keep its key lending rate at 6.75 percent Thursday, a Bloomberg survey shows, but raise it within the next year. Forward-rate agreements beginning in 12 months show a 50 basis-point increase by the end of next year. Inflation has been inside the 6 percent upper band of the central bank’s target range for seven months, the longest streak in almost two years, but a weakening rand has countered chances of a rate cut in Africa’s most-industrialized economy.

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